Filtronic Share Discussion Threads

[finimps] 01/2/2023 08:53

Yesterday's price drop was inevitable considering the statement mentioned reduced revenue in 2023, however we've all the known about the semiconductor shortages for some time now and surely this was already factored in. The more important news of the new 2m contract is very positive and persuades me to continue holding. In fact, if I had any spare cash I'd be adding right now.

[bazworth] 31/1/2023 07:15

Good update & excellent new contract

Disappointing to see the impact of shortages but not unexpected.

Well done all at Filtronic

Cheers

[soilderboy] 26/1/2023 21:51

How can this be 4% down today. Don't make sense. More buys than sells with 3 timed higher volume.

[estienne] 25/1/2023 12:00

A wedge bonder is hardly going to win them business
But it might help them keep their trousers from falling down

[taffy24] 24/1/2023 11:39

23 January 2023

Filtronic buys automated wedge bonder for power semis, automotive power modules and industrial power hybrids

[bazworth] 18/1/2023 22:11

I think it is albeit reported quite late.

Interim results early Feb

Cheers

[wageslave] 18/1/2023 21:57

This looks like a significant new holding.

River and Mercantile Asset Management LLP 11,333,451
5.3%

[bazworth] 20/12/2022 15:08

Estienne,

“more experienced investors”

You really take the biscuit!!

Cheers

[red ninja] 20/12/2022 13:54

Simply Wall St generally provides auto generated mumbo jumbo.

[estienne] 20/12/2022 13:36

You may not be familiar with the metrics used above but more experienced investors use them to gauge the level of risk associated with a company.

[bazworth] 20/12/2022 12:47

Estienne,

Is that the best that you can do?

Do you really believe that the information that you have posted has been properly researched or is it more likely to be computer generated nonsense?!

Why on earth you continue to pour cold water on FTC is an absolute mystery. If you don't believe they will do well, the sell and clear off!! That is if you hold as you often claim to.

Someone must have really upset you to cause such bitterness.

Have a great Christmas!!

Cheers

[estienne] 20/12/2022 09:29

Extract from Simply Wall St

Filtronic's stock is up by a considerable 16% over the past month. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. In this article, we decided to focus on Filtronic's ROE.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.


Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Filtronic is:

13% = UK£1.5m ÷ UK£11m (Based on the trailing twelve months to May 2022).

The 'return' is the amount earned after tax over the last twelve months. So, this means that for every £1 of its shareholder's investments, the company generates a profit of £0.13.

Why Is ROE Important For Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

Filtronic's Earnings Growth And 13% ROE
To begin with, Filtronic seems to have a respectable ROE. Further, the company's ROE is similar to the industry average of 14%. However, while Filtronic has a pretty respectable ROE, its five year net income decline rate was 37% . Based on this, we feel that there might be other reasons which haven't been discussed so far in this article that could be hampering the company's growth. Such as, the company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures.

However, when we compared Filtronic's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 30% in the same period. This is quite worrisome.

past-earnings-growth
past-earnings-growth
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Filtronic's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is Filtronic Efficiently Re-investing Its Profits?
Filtronic doesn't pay any dividend, meaning that potentially all of its profits are being reinvested in the business, which doesn't explain why the company's earnings have shrunk if it is retaining all of its profits. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.

Conclusion
In total, it does look like Filtronic has some positive aspects to its business. However, given the high ROE and high profit retention, we would expect the company to be delivering strong earnings growth, but that isn't the case here. This suggests that there might be some external threat to the business, that's hampering its growth. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company

[estienne] 19/12/2022 10:22

Some of us have been here much longer but have a Happy Christmas
I expect a few more will pass before Filtronics gets some orders

[bazworth] 16/12/2022 11:24

I’ve been here so long……

Believe FTC is a great little company with a fairly dynamic leadership group. May take another 18-24 months but I’m patient!!

[dougerboy] 16/12/2022 11:19

I wouldn’t be so sure about that baz.There might be a little more doing & dusting?

[bazworth] 16/12/2022 09:15

Looks like the little fun we were having is done & dusted!

Results early February, hopefully positive

Cheers

[slicethepie] 13/12/2022 11:36

That was what you suggested 2 months ago

[slicethepie] 13/12/2022 11:35

Excellent advice ! Ftc is up 15% vod is down 15% . Stick to the day job!

[bazworth] 13/12/2022 11:27

Brilliant

Estienne optimism at its best!!



Cheers

[estienne] 13/12/2022 10:19

kaos3 you're right to be cautious. FTC always rises a bit into the new year but until they get some good orders I can't see any reason for the share price to escalate very much.

[slicethepie] 11/12/2022 09:32

I would stay silent !

[kaos3] 11/12/2022 08:03

I am silently following ftc since the large insideren buys. I could not find the new reason for buying yet. Rather the opposite. I saw the rise at its beginnings but did not jump on....

We almost have a war economy and some will gain. But not all.

[wisecat2] 10/12/2022 21:12

Is she on tinder